Palo Alto site may get housing, park
The former site of a Fry’s Electronics in Palo Alto could get affordable housing and a new park under an agreement reached by the city and the property’s owner.
The deal between Palo Alto and the Sobrato Organization follows years of debate and litigation threats surrounding the future use of the property at 340 Portage Ave., which sits in a neighborhood targeted by city for redevelopment.
The property is part of a sprawling complex between El Camino Real and Alma Street, the site of the historic Bayside Cannery that once was the world’s thirdlargest cannery and now hosts research and venture capital firms.
Debate about the site’s potential use for housing amplified after Fry’s closed its electronics storefront in December 2019. The property is zoned for multifamily housing, though an exemption allowed commercial use during Fry’s operation and Sobrato had threatened to sue the city over its zoning interpretations, according to Palo Alto Weekly, which first reported the agreement.
The Cannery Building would be preserved and rehabilitated with public art and a historic plaque under the agreement Palo Alto Mayor Pat Burt announced at the June 21 City Council meeting following nearly two hours of closedsession talks.
Burt said the deal “creates a framework to consider rezoning” of the site and will help the city “avoid potential litigation.” The deal needs to be vetted through a public process and get City Council approval before becoming final, Burt said. The City Council plans to discuss the deal and hear a presentation from Sobrato in August.
Roughly 84,000 square feet of the Cannery Building — about one-third of the building’s square footage — would be earmarked for 74 town homes sold at market rate. The building’s area for research and development will retain its existing use. About 2,600 square feet in the Cannery Building would be dedicated for “retail or retail-like land use,” according to the city.
About 3.25 acres of land would go toward building a park near the area surrounding Matadero Creek, and the deal carves out another acre of land for affordable housing.
Sobrato in turn would contribute $4 million to the city’s affordable housing fund to use for redeveloping the Ventura neighborhood, home to the former Fry’s storefront, as well as a $1 million donation to support park improvements in the area.
Under the agreement, Sobrato also would build a parking lot behind the Cannery Building to replace lost parking.